New Report Shows Cumulative Hospital Cuts Top $218 Billion

Washington, D.C. (June 14, 2018) The cumulative reductions in federal payments to hospitals since 2010 will reach $218.2 billion by 2028, according to a report released today by the health economics consulting firm Dobson | DaVanzo and Associates.

The study, which was commissioned by the Federation of American Hospitals (FAH) and the American Hospital Association (AHA), examined how eleven pieces of legislation combined with numerous regulatory changes would affect hospital funding from 2010 through 2028.

The leaders of FAH and AHA reacted to the results.

“$218 billion is not just a number; the funding reductions it reflects have real world consequences for patients. Losses of this significance simply cannot be sustained and will affect the ability of hospitals to meet the expectations of the patients and communities we serve. It is critical that going forward policymakers recognize this fact and work with hospitals so we can continue to deliver the 24/7 care Americans deserve,” said Chip Kahn, FAH President and CEO.

AHA President and CEO Rick Pollack added, “Continued cuts of this magnitude represent a troubling trend for hospitals and health systems as many struggle with declining reimbursements for services provided in and out of the hospital. As noted in other recent reports, Medicare margins have hit a ten-year low and almost a third of hospitals now have negative aggregate margins across all payer types. Additional reductions will create challenging and potentially unsustainable financial circumstances that could adversely impact patients’ access to care and the ability of hospitals to provide services.”

A complete copy of the Dobson | DaVanzo study can be found www.fah.org and www.aha.org.

Contact:

Sean Brown, Federation of American Hospitals (FAH), (202) 624-1527
Marie Johnson, American Hospital Association (AHA), (202) 626-2351

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About the AHA

The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.